On Friday the FCA published their Final Rules on Consumer Credit regulation. They are , according to the FCA, pretty much unchanged from their original consultation and have the greatest impact on Pay Day Lenders and Debt management Companies. It will have little impact on most mortgage broker firms, unless they also undertake additional work in these two particular areas.
For payday lenders and debt management companies, the following key changes will be taking place:
- a limit to the number of loan roll-overs to two
- a restriction (to two) the number of times a firm can seek repayment using a continuous payment authority (CPA)
- a requirement to provide information to customers on how to get free debt advice
- a requirement for debt management firms to pass on more money to creditors from day one of a debt management plan, and to protect client money
A technical glitch with Adobe on my system at the present time prevents me from being able to give a full update right now but I will be getting back on a couple of points later in the week. In the meantime, if you want to read further you can read the consultation paper
here
